Where I'd invest $3,000 into ASX dividend shares in January

 Investing in ASX dividend shares can be a lucrative strategy for generating passive income. However, it's crucial to choose wisely, considering both the dividend yield and the growth potential of the companies. In this analysis, we'll explore three ASX dividend shares worth considering for a $3,000 investment.

Centuria Industrial REIT (ASX: CIP)

Centuria Industrial REIT (ASX: CIP) is a real estate investment trust that owns industrial properties in key Australian cities. Despite a shortage of quality locations in these markets, the REIT boasts an impressive 98.6% occupancy rate as of the first quarter of FY24. The strong demand for industrial properties is translating into robust rental income growth, with a re-leasing spread of 48% in the FY24 first quarter.

Looking ahead, the company anticipates a distribution of 16 cents per unit in FY24, offering a forward distribution yield of around 5%. The high occupancy rate and positive leasing trends make Centuria Industrial REIT an attractive choice for investors seeking stable passive income from the real estate sector.

Brickworks Limited (ASX: BKW)

Brickworks Limited has a remarkable dividend history, having maintained or grown its dividend for almost 50 years. The company's strategic stake in investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has contributed to its consistent dividend growth and capital value. This investment provides stability, offsetting potential volatility in Brickworks' building products division.

As Australia's largest brickmaker, Brickworks stands out for its excess land strategy. The company steadily sells excess land into a joint industrial property trust, where large warehouses are constructed. The demand for commercial properties further enhances rental profit and underlying value for Brickworks.

With a trailing grossed-up dividend yield of 3.3% at the current share price, Brickworks offers a balanced mix of stability and growth potential, making it an appealing choice for income-focused investors.

Metcash Ltd (ASX: MTS)

Metcash is a major supplier of food to IGA supermarkets and independent liquor stores across various brands, including IGA Liquor, Cellarbrations, The Bottle-O, Thirsty Camel, and Porters Liquor. Additionally, the company has a robust hardware division featuring Mitre 10, Home Timber and Hardware, and Total Tools.

Metcash's commitment to a 70% dividend payout ratio of underlying net profit, combined with its low valuation, presents an attractive proposition for dividend-seeking investors. According to Commsec, the stock is trading at under 14 times FY24's estimated earnings, offering a grossed-up dividend yield of 8.2%.

The company's diversified business model, spanning both the food and hardware sectors, contributes to its resilience and attractiveness as an income-generating investment. For investors seeking a combination of high dividend yield and a solid business foundation, Metcash stands out as a compelling choice.

Conclusion

Investing $3,000 in ASX dividend shares can provide a steady stream of passive income. Centuria Industrial REIT, with its high occupancy rates and positive leasing trends, offers stability in the real estate sector. Brickworks Limited, backed by a strong dividend history and innovative excess land strategy, presents a balanced approach to income and growth. Finally, Metcash Ltd, with its diversified presence in food and hardware, offers an impressive grossed-up dividend yield for income-focused investors. As with any investment, thorough research and consideration of individual financial goals are essential before making decisions in the stock market.